BAKU, Azerbaijan, July 13. UAE hails the IsDB Baku meetings as a catalyst for regional integration.
“These meetings once again served as an important platform for constructive dialogue among member countries to shape development priorities, exchange knowledge and best practices, and strengthen economic cooperation. Against the backdrop of the rapidly evolving geopolitical and economic landscape, particularly the recent developments affecting the Gulf region, the discussions held during this year's meetings carried added significance. They provided an opportunity to address emerging challenges, enhance economic resilience, and identify new avenues for sustainable and inclusive growth,” Ali Abdullah Sharafi, Assistant Undersecretary for International Financial Relations of the Ministry of Finance of the United Arab Emirates (UEA) said in an exclusive interview with Trend.
He pointed out that the candid and forward-looking conversations held during these meetings will contribute to shaping policies and initiatives that support long-term development objectives, strengthen regional connectivity, and promote greater economic integration among member countries.
“The meetings also advanced cooperation in key areas such as infrastructure development, trade facilitation, private sector participation, food and energy security, digital transformation, and climate resilience. A key highlight of this year's meetings was the opportunity to reinforce partnerships between governments, multilateral institutions, and the private sector, while mobilizing resources for high-impact development projects. At a time of heightened uncertainty in the global economy, these discussions helped reinforce the importance of coordinated responses that support stability, prosperity, and sustainable development across member countries,” Sharafi added.
He went on to add that this year’s theme of the IsDB meetings closely aligns with the UAE vision.
“The main theme of this year’s Annual Meetings was “Regional integration is a driver of sustainable prosperity,” which reaffirmed IsDB’s commitment to strengthen regional cooperation and foster sustainable growth among its member countries. This theme closely aligns with the vision of the United Arab Emirates, which believes that strengthening economic and development cooperation among nations is a fundamental pillar for achieving sustainable growth and shared prosperity,” said Sharafi.
He noted that the UAE has a long-standing commitment to sustainable development and economic growth, in line with the objectives of the UAE Centennial 2071, which seeks to build a competitive knowledge-based economy driven by innovation and sustainability while further strengthening the country's position as a global hub for development and economic opportunities.
“In this context, the UAE underscored the importance of collective action and multilateralism in addressing global challenges. The UAE reaffirmed its support for IsDB’s continued efforts aimed at enhancing regional economic integration and advancing cooperation mechanisms among member countries, thereby contributing to the achievement of sustainable development goals, improving the economic and social well-being of their peoples, and laying the foundations for long-term prosperity for future generations. Furthermore, the UAE believes that regional integration extends beyond merely strengthening economic and trade ties; it also entails knowledge exchange, capacity building, and addressing shared challenges, which ultimately fosters more inclusive and sustainable development across member countries,” Sharafi said.
UAE urges IsDB members to diversify economies to boost resilience
“To strengthen the resilience of member countries’ financial systems within the Islamic Development Bank (IsDB) framework, a multi-dimensional approach that blends proactive risk management with long-term structural transformation is essential. Economic diversification remains the most effective hedge against external shocks. By drawing lessons from the UAE’s experience, where deliberate efforts to build a knowledge-based, innovation-driven economy contributed to real GDP growth of 5.6% in 2025, supported by 6.1% growth in non-oil sectors, member countries can effectively insulate themselves from commodity price volatility,” Ali Abdullah Sharafi noted.
Moreover, he believes that institutionalizing foresight is equally critical.
“Countries must move beyond reactive measures by investing in sophisticated, data-driven early finance risk identification models. The IsDB’s Response, Recovery and Resilience (3R) Facility provides a useful blueprint for this, offering a mechanism to provide rapid emergency financing and strengthen preparedness. Expanding such frameworks ensures that even the most fragile member states can develop buffers against macroeconomic and climate-related shocks,” said Sharafi.
Furthermore, according to him, leveraging the intrinsic stability of Islamic finance, which links capital to real economic production, helps prevent speculative bubbles that often exacerbate global downturns.
“This must be coupled with an unwavering commitment to multilateral cooperation. By using the IsDB platform to exchange best practices and foster South-South collaboration, member countries can align their policy reforms to transform systemic vulnerabilities into sustainable growth opportunities. In this era of global uncertainty, resilience is not a solitary endeavor; it is rather a shared goal achieved through integrated planning, inclusive finance, and strategic, long-term economic diversification,” Sharafi explained.
Development of Islamic finance in UAE
He believes Islamic Fintech represents the "next frontier" for the UAE’s Islamic banking sector.
Sharafi recalled that in 2025, global Islamic finance assets reached approximately USD 6 trillion, with Islamic banking assets accounting for about USD 4 trillion of that total.
“The sector continues to maintain a strong 10% growth trajectory, largely driven by the Middle East (specifically the GCC) region, which remains the industry's epicenter, holding approximately 50–55% of total Islamic bank assets. The UAE is consistently ranked among the world’s leading Islamic finance hubs, alongside Malaysia and Saudi Arabia. Beyond our established banking infrastructure, the UAE is recognized as a key leader in the growth of the Islamic fintech ecosystem, supported by a highly progressive and favorable regulatory environment. As a pioneer and active driver of digital transformation, I believe Islamic Fintech represents the "next frontier" for the UAE’s Islamic banking sector. By leveraging our state-of-the-art digital infrastructure, we are well-positioned to scale these innovations globally,” he said.
Furthermore, he highlighted a significant momentum in green sukuk and ESG-linked Sharia-compliant finance.
“According to Fitch data from earlier this year, the UAE was the second-largest dollar sukuk issuer globally in 2025, trailing only the leaders in the primary market. It also solidified its position as the third-largest ESG sukuk issuer worldwide,” Sharafi added.
UAE expects CEPA to deepen economic integration with Azerbaijan
“The United Arab Emirates and Azerbaijan maintain a robust strategic partnership, further cemented by the Comprehensive Economic Partnership Agreement (CEPA), which entered into force on 15 April 2026. This agreement serves as a vital framework to promote investment flows, enhance trade, and foster growth in financial services, including the expansion of financing options for small and medium-sized enterprises (SMEs),” Abdullah Sharafi said.
He recalled that by the end of 2022, the UAE has invested more than USD 1.1 billion in the Azerbaijani economy.
“Utilizing the CEPA’s dedicated chapter on services, which is a first for Azerbaijan, may further deepen economic integration and create new avenues for private-sector cooperation between the two nations in a manner that serves our shared interests and advances mutually beneficial trade in services as well as sustainable development objectives,” said Sharafi.
He pointed out that the UAE and Azerbaijan have a signed Double Taxation Avoidance Agreement (DTA) that has been in effect since 28 August 2007.
“Designed to prevent the double taxation of income and capital, this treaty provides clarity on taxing rights for investors and businesses operating across both jurisdictions and further supports bilateral investment,” added Sharafi.
